Discuss Detroit Archives - Beginning January 2007 Ford will pay bonuses to all workers Previous Next
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Lilpup
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Username: Lilpup

Post Number: 1790
Registered: 06-2004
Posted on Thursday, March 08, 2007 - 3:38 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ford will pay bonuses to all workers

http://www.detnews.com/apps/pb cs.dll/article?AID=/20070308/U PDATE/703080460/1148

"The company believes that recognizing accomplishments is important," said Ford spokeswoman Marcey Evans. "It's a recognition that all employees contributed to the progress that the company made."

Employees learned of the bonuses Thursday in an e-mail message from CEO Alan Mulally.
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Psip
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Username: Psip

Post Number: 1526
Registered: 04-2005
Posted on Thursday, March 08, 2007 - 3:45 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Alan Mulally: Mark, were going broke, Ford may not survive.

Mark Fields: Lets give all the money away.

Alan Mulally: Brilliant!
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3rdworldcity
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Username: 3rdworldcity

Post Number: 498
Registered: 01-2005
Posted on Thursday, March 08, 2007 - 3:48 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Psip: Were you a fly on the wall in the exec dining room? Rings true to me. Very funny.
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Dougw
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Username: Dougw

Post Number: 1591
Registered: 11-2003
Posted on Thursday, March 08, 2007 - 4:41 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

LOL @ Psip
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Islandman
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Username: Islandman

Post Number: 347
Registered: 08-2004
Posted on Thursday, March 08, 2007 - 4:43 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Excellent Psip!
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Goat
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Username: Goat

Post Number: 9274
Registered: 10-2003
Posted on Thursday, March 08, 2007 - 4:55 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Don't forget Mulally's corporate jet that can wisk him AND his family away at a moments notice.
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Detroitplanner
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Username: Detroitplanner

Post Number: 1054
Registered: 04-2006
Posted on Thursday, March 08, 2007 - 5:14 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I bet the folks that took the buy-out are feeling doubly screwed!
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Spiritofdetroit
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Username: Spiritofdetroit

Post Number: 347
Registered: 11-2006
Posted on Thursday, March 08, 2007 - 5:21 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

planner-
"Even employees who served through the end of last year and recently separated from the company by accepting a voluntary package offer are eligible."

From Mullaly's email....
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Lilpup
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Username: Lilpup

Post Number: 1793
Registered: 06-2004
Posted on Thursday, March 08, 2007 - 5:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ford's Shares Rally as Credit Suisse Raises Rating

Bloomberg.com

Ford may report a first-quarter pretax loss of $1.4 billion to $1.5 billion, analyst Christopher Ceraso wrote in a note today. Ceraso previously estimated a loss of $1.7 billion. He raised his rating to ``neutral'' from ``underperform,'' in at least the fourth analyst upgrade of Ford since December.

Ceraso's upgrade of Ford follows similar moves by Deutsche Bank AG, Morgan Stanley and Merrill Lynch.
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Scottr
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Username: Scottr

Post Number: 368
Registered: 07-2006
Posted on Thursday, March 08, 2007 - 5:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

for the sake of argument...

last year Ford had a 5 cent dividend, for a total dividend payout of ~91 million.

from other articles, it appears the payouts will be $300-$800. even take 700 as an average (fairly generous), multiply it by the 130,000* US & Canadian employees, you get 91 million.

So what's the difference between giving the money to the stockholders, and giving it to the employees who are the key to your revival?

not that i'm saying i agree with the move, but i can see the logic.

*i'm not sure as to the accuracy of that number, but from what i did find, it appears to be close.
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Psip
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Username: Psip

Post Number: 1527
Registered: 04-2005
Posted on Thursday, March 08, 2007 - 5:32 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Monday
Ford Motor Co. has recalled about 155,000 pickup trucks and sport utility vehicles, including F-250, F-350, F-450 and F-550 Super Duty trucks.

Wednesday
Ford next week will begin recalling 109,664 Crown Victoria sedans because cracks can develop in their steel wheels, causing rapid air loss in tires during high-speed chases.

And the Hits just keep on coming.
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Lilpup
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Username: Lilpup

Post Number: 1794
Registered: 06-2004
Posted on Thursday, March 08, 2007 - 6:04 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

all have some recalls, others have more both in numbers and seriousness ~ Most Recalled Cars

and a recent biggie ~ Volkswagen recalls 790,000 cars
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Charlottepaul
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Username: Charlottepaul

Post Number: 636
Registered: 10-2006
Posted on Thursday, March 08, 2007 - 6:08 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"So what's the difference between giving the money to the stockholders, and giving it to the employees who are the key to your revival?"

The more money you give to the stockholders, the more people will invest in the company which leads to more stock purchases and liquid assets for the corporation. Giving more money to the employees leads to... Anyway, while it is important to reward employees, there is no saying that that investment will garner a return.
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Scottr
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Username: Scottr

Post Number: 369
Registered: 07-2006
Posted on Thursday, March 08, 2007 - 6:24 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

charlottepaul, while dividends may be a way to increase the stock price by making it more attractive as a money maker, it does nothing to help the bottom line. it garners NO return. does ford get a cut of the money if investor A sells to investor B? (that's an honest question, i don't think it does, but i could be wrong)

granted, my knowledge of stocks is admittedly limited, but other than an IPO or issuing additional shares, i don't see stock purchases bringing more money into the company.

Ford is facing serious morale problems, this is an understandable move to reinvigorate employees faced with job cuts and an uncertain future. Seems to me to be better than throwing the money to Wall Street, who is more concerned about padding their own wallets now than the long-term health of the company.

In any case, this may or may not take the place of dividends. my numbers still show that it works out to about 5 cents a share. I'd say that's worth it to help alleviate a serious problem in the company.
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Lilpup
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Username: Lilpup

Post Number: 1795
Registered: 06-2004
Posted on Thursday, March 08, 2007 - 6:28 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Big business has lost any semblence of serving a purpose other than achieving short term gain for shareholders

invest in any employees below corporate board level? major league business sin

pay attention to customers' needs or desires? ditto (and forget about EVER making a customer feel valued)

Let Ford buck the trend

(Message edited by lilpup on March 08, 2007)
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3rdworldcity
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Username: 3rdworldcity

Post Number: 499
Registered: 01-2005
Posted on Thursday, March 08, 2007 - 6:28 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Charlottepaul: An increase in the number of stock purchasers does not put any money in the company's pockets (unless there's a new issue of stock by the company, in which case it would get the proceeds.) The more purchasers there are for existing stock usually makes the shares increase in value, which benefits the shareholders.

As the perception of the company by debt rating companies and Wall Street gets better, it could lead to lower debt costs and increase the ability of the company to sell more stock, bonds etc.
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Karl
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Username: Karl

Post Number: 6457
Registered: 09-2005
Posted on Thursday, March 08, 2007 - 7:30 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Today from the American Family Association:

Ford dropping public support for the homosexual agenda?

It appears that Ford Motor Company, in response to AFA's boycott, is silently dropping public support for the homosexual agenda. Here's why.

For years, Ford has advertised in the homosexual publications OUT and The Advocate. Since January Ford has not had any advertising in the magazines. In addition, Ford no longer sponsors the Gay & Lesbian Alliance Against Defamation Media Awards, which they have sponsored for years.

When we looked at all the other homosexual events Ford has sponsored in the past, Ford was nowhere to be found.

The homosexual groups have remained silent about Ford's moves, fearful that other companies may follow Ford's lead. Since the boycott began, not a single homosexual group has publicly supported Ford.

However, it could be that the homosexual groups have agreed to be treated as second-class citizens by Ford, continuing to get money from Ford but agreeing not to publicly acknowledge Ford's support.

In February, Ford's sales dropped 13.5% compared to a year ago. Ford's sales have consistently gone down since the boycott began.
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Jams
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Username: Jams

Post Number: 4872
Registered: 10-2003
Posted on Thursday, March 08, 2007 - 7:36 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Karl,
Why are you so concerned about gays? They rarely have abortions.
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Scottr
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Username: Scottr

Post Number: 370
Registered: 07-2006
Posted on Thursday, March 08, 2007 - 7:39 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

nice way for them to spin it as if their boycott has had any affect. Ford truck sales were down in february. meanwhile, their family cars (fusion, milan, mkz) are up. you'd think the family cars would be down too if the 'American Family Association' boycott was having a serious affect.
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Karl
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Username: Karl

Post Number: 6460
Registered: 09-2005
Posted on Thursday, March 08, 2007 - 7:48 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Jams, I'm more concerned about Ford and Michigan. Haven't invested & lost money on gay stocks lately.
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Detroitplanner
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Username: Detroitplanner

Post Number: 1055
Registered: 04-2006
Posted on Thursday, March 08, 2007 - 8:23 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ford is not supporting a lot of things they used to support. Maybe seniors should stop buying Ford products because they no longer subsidize the Senior PGA event at the Michigan TPC in Dearborn?
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Karl
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Username: Karl

Post Number: 6461
Registered: 09-2005
Posted on Thursday, March 08, 2007 - 10:51 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Detroitplanner, maybe seniors should resume buying Ford products so they can resume subsidizing the Senior PGA event at the MI TPC in Dearborn?

Nothing like throwing Grandma from the train during her golden years (after she built Dearborn)
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Johnlodge
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Username: Johnlodge

Post Number: 203
Registered: 10-2003
Posted on Friday, March 09, 2007 - 3:54 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I think it's pretty clear that the bonuses were given to boost morale. It's pretty hard to hear nothing about how bad your company, your city, and your state are doing over and over and over again and not let it get you down. I don't know if it's fiscally responsible or not, but if it the workers can feel a little better and maybe take their family out here and there with their bonus, they will probably have better attitudes. I dunno, I'm not going to argue with anybody who says it was a bad idea, but I can see the reasoning behind it.
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Sstashmoo
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Username: Sstashmoo

Post Number: 34
Registered: 02-2007
Posted on Friday, March 09, 2007 - 9:03 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Seems if the autoworkers new the employment situation outside of their job, that would be a morale booster within itself..

Sorry, but I just don't understand what the corporate obligation is. $100k Buyouts? Bonuses and lost 12 billion dollars? Any other business in the US when times are tough, lays people off. Union or no union.
The autos need to start running their companies. Do whatever it takes to legally make themselves solvent. Golden handshakes aren't going to fix anything.
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Charlottepaul
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Username: Charlottepaul

Post Number: 646
Registered: 10-2006
Posted on Friday, March 09, 2007 - 9:33 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I second that; it's hard to break the decades old habits of the industry and its workers...
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Lilpup
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Username: Lilpup

Post Number: 1814
Registered: 06-2004
Posted on Friday, March 09, 2007 - 9:44 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

no other industry has severance pay or bonuses?
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Charlottepaul
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Username: Charlottepaul

Post Number: 649
Registered: 10-2006
Posted on Friday, March 09, 2007 - 9:55 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Maybe professional sports, if that counts? Regardless, we aren't going to take a reading of all industries to find out, rather the point is that the auto industry has been way over-valued and therefore its employees over-compensated. IT NEEDS TO MAKE ITSELF AT LEAST AKIN TO OTHER MAJOR INDUSTRIES IN THE U.S.
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Lilpup
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Username: Lilpup

Post Number: 1816
Registered: 06-2004
Posted on Friday, March 09, 2007 - 9:57 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

like what, stock brokering?
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Elviswithteeth
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Username: Elviswithteeth

Post Number: 2
Registered: 03-2007
Posted on Saturday, March 10, 2007 - 12:02 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

You mean I left Ford and going to miss this bonus? Oh darn! Oh thats rights....we dont get a raise this year. Good Job...Alot Moola, I did get my cool mil bonus.
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Ja1mz
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Username: Ja1mz

Post Number: 11
Registered: 02-2007
Posted on Saturday, March 10, 2007 - 5:56 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I was laid off from Xerox in '03 after 13 years, all I got was 1 week of pay for each year I worked. They continue to diminish the ranks to this day. None of us got anything additional for not growing the business.
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Nyburgher
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Username: Nyburgher

Post Number: 91
Registered: 10-2006
Posted on Saturday, March 10, 2007 - 11:11 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Giving away money you don't have to anyone just reduces the book value per share. Unless you turn it around you are liquidating the company-- I think?
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Lilpup
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Username: Lilpup

Post Number: 1827
Registered: 06-2004
Posted on Saturday, March 10, 2007 - 11:52 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

1) it's the company's money
2) concentrating solely on book value per share is the kind of short term thinking that gets so many companies into trouble
3) you're not going to turn anything around with a demoralized workforce
4) if well-managed, a company's workforce can be it's greatest asset
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Nyburgher
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Username: Nyburgher

Post Number: 92
Registered: 10-2006
Posted on Sunday, March 11, 2007 - 12:12 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

It's the shareholder's money. For the most part my comment was about how crazy the dividend is at this point.

The "demoralized workforce" will be happy when the company has lost all it's assets and they lose their jobs? My impression from a distance is that you have a lot of workers who don't care about how the company does just as long as they get paid. They need to get government jobs.
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Lilpup
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Username: Lilpup

Post Number: 1828
Registered: 06-2004
Posted on Sunday, March 11, 2007 - 12:17 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

keep your distance - you're obviously clueless about industry
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Nyburgher
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Username: Nyburgher

Post Number: 93
Registered: 10-2006
Posted on Sunday, March 11, 2007 - 12:32 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Clueless enough to have avoided this stock.

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